Chapter 17 - The internet and e-commerce (2)

Chapter 17 - The internet and e-commerce (2)

1. Trends in the UK -- According ti the Office for National Statistics (ONS) report published in November 2008, internet sales rose by 30 per cent in 2007. The total figure for 2007 is quoted as being £136 billion, an increase of more than 30 per cent on the figure of £152.2 billon in 2006.

2. USING THE INTERNET FOR RESEARCH

   • ADVANTAGES
     • Using the internet for secondary market research is a quicker way for a business to get information about what the market wants and needs than commissioning or undertaking the research themselves.
     • It is likely that any commercially available research will have questioned a larger sample of people than any research the business could do itself.
     • If the information is available electronically it is easier for the business to edit it and to place it in its own documents.
     • It is easier to obtain information about competitors than to take the time to visit them individually, not to mention the saving in fuel cost
   • DISADVANTAGES
     • It can be expensive to buy the market research findings that a business needs.
     • When taking research from the internet it is important that the businessatifies itself that the research is up to date and accurate. It is not enough just to check that the research was published recently, the business should look to see when the actual research was done. Ideally the research should have been done by an organisation that is well known and trusted.
     • The business should only use research that has been conducted mini similar locality. There is no point in looking at research conducted in London if the business us located in Wales.

3. HAVING A WEBSITE

   • ADVANTAGES
     • Having a website, or being featured on a website cab give a business a global presence which it would otherwise not be able to afford. Instead of just being seen in a small town, the business can be 'reached' across the world.
     • A website will appear in full colour and may have many links and hyperlinks to different pages. The cost of producing the material as brochures and other forms of advertising would be very high.
     • Having a website and making it into an e-commerce site, will mean that customer will be able to buy from the website as the business will be open 24 hours a day, 7 days a week. This can dramatically increase the amount of revenue a business earns.
   • DISADVANTAGES
     • Not all customers wish to use a website and if that becomes the norm for that business the non-tecnolically minded customers may go elsewhere.
     • If a business is trading globally it must have the stock available to service the demand, otherwise customers will become frustrated and will give the business a bad name if the sock is not available.
     • Most websites are designed by commercial businesses, and the coast can be high depending on the complexity and size of the site.

4. USING THE INTERNET FOR COMMUNICATION VIA EMAIL

   • ADVANTAGES
     • Unlike post, emails usually arrive very quickly after they are sent, provided that the recipients refresh their email page regularly.
     • Businesses can email people in different time zones, such as from the UK to America, becuase they can be read and replied at the convince of the recipient rather than telephoning at an incovinent time.
     • It is quicker to write a email than a business letter because it does not require a formal layout. Many features of a business letter are unnecessary, such as the date and the full postal address of the sender and the person reciveing the email.
   • DISADVANTAGES
     • Emails can be sent to the wrong person and this can cause problems due to the lack of conferedentaulaty.
     • It is possible for a email system to be hacked into and therefore it should not really used for confidential material.
     • The email system relies on everyone having the equipment needed to send and receive emails ad checking there inboxes regularly. Nn-technoligable minded people may resist the change and may find that they are not receiving information that they need if they cannot or will not use email.